SECURITIES AND EXCHANGE COMMISSION
LITIGATION RELEASE NO. 15706 / April 14, 1998
SECURITIES AND EXCHANGE COMMISSION v. EDWARD J. PARADIS JR. AND
WALTER R. SNYDER, JR. (United States District Court for the
District of Massachusetts, Civ. Action No. 98-10638-NG).
The Securities and Exchange Commission announced that on April
14, 1998, the Honorable Nancy Gertner, U.S. District Judge for
the District of Massachusetts, unsealed an emergency order
entered on April 13, 1998, temporarily restraining EDWARD J.
PARADIS, JR., and WALTER R. SNYDER, JR., from continuing a
fraudulent investment scheme in violation of the federal
securities laws. The order also freezes the assets of Paradis
and Snyder. Paradis resides in Sturbridge, Massachusetts.
Snyder is a lawyer who maintains an office in Sturbridge and
resides in Southbridge, Massachusetts.
The Commission's complaint alleges that Paradis and Snyder
obtained $175,000 from an investor, promising him a return of
over 300% in stock and cash within thirty days. They falsely
told the investor that his money would be safely held in Snyder's
attorney escrow account until completion of a "financing"
transaction that would produce the 300% profit. Contrary to
their promises to the investor, however, Paradis and Snyder began
removing the investor's funds as soon as the funds arrived in
Snyder's account, and have misappropriated at least $144,000 to
date, using it for purposes such as paying Paradis' rent. Some
of the investor funds were transferred to a Swiss bank account in
Paradis' name. The Complaint alleges that even after the money
was misappropriated, Paradis assured the investor that the
completion of the transaction was imminent.
In its Complaint, the Commission further alleges that Paradis and
Snyder falsely told the investor they had successfully completed
similar "financing" transactions on several prior occasions when,
in fact, they had engaged in a series of at least six fraudulent
schemes during the past three years, obtaining and
misappropriating over $1 million from investors.
In addition to temporarily restraining Paradis and Snyder and
freezing their assets, the Court's order requires them to provide
an accounting of their assets, orders the repatriation of
investor funds abroad and grants other emergency relief. The
Commission filed its Complaint on April 13 on an emergency ex
parte basis.
Both Paradis and Snyder are charged with violating the antifraud
provisions of the federal securities laws, Section 17(a) of the
Securities Act of 1933 and Section 10(b) of the Securities
Exchange Act of 1934 and Rule 10b-5 thereunder. In its Complaint
the Commission also seeks a permanent injunction, disgorgement of
Paradis' and Snyder's ill-gotten gains and civil monetary
penalties.